Delta PDA Distributors Has an Investment in Accounts Receivable of $2,750,000

question 16

Multiple Choice

Delta PDA Distributors has an investment in accounts receivable of $2,750,000. Daily credit sales are $118,280. If 30% of Delta's credit customers receive a discount by paying within 10 days and the remainder of Delta's customers pay in 40 days, what is the Average collection period that Delta maintains?

• A) 31 days
• B) 40 days
• C) 37 days
• D) 19 days

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